The Chronicle of Philanthropy and the Press Democrat are reporting that a federal grand jury has charged a California man with 9 counts of wire fraud relating to the alleged theft of over $2 million from the National Education Foundation in Alexandria, VA. The organization offers grants and online classes to disadvantaged students around the world.
The scheme was to invest $2.35 million promising profitable returns in the form of high monthly interest rate payments. The organization collected an initial $274K but the remainder of the money was allegedly used for personal expenses from a private account.
The president of the organization, Appu Kattan, was quoted as saying,”To me it’s like stealing from kids, it’s horrible.”